Though it was a choppy day for market, equity benchmarks managed to close marginally higher by snapping three-day losing streak on Friday. Global mood was also upbeat due to second straight day surge in Chinese markets and latest Greek’s reform proposal. The 30-share BSE Sensex climbed 87.74 points to 27661.40 and the Nifty rose 32 points to 8360.55 after losing more than 2 percent in previous three consecutive sessions, backed by banks, capital goods, pharma and select metals stocks. The broader markets marginally outperformed benchmarks, rising 0.2 percent each. The recovery in markets was also ahead of May industrial output data scheduled to be announced today evening. Though globally European Union’s meet on Greek proposal is important, Indian markets started focussing on Q1 earnings and monsoon session, said experts. The recent market correction should be seen in a positive light as it is now trading at 16x earnings, which is not expensive, said Prabodh Agrawal, president and head of research at IIFL Institutional Equities. He expects a sharp rebound if there is a correction of 8-10 percent in near term. He sees consistent buying from domestic institutions at every dip. For the week, the Sensex and Nifty lost 1.5 percent due to stock market rout in China and ahead of June quarter earnings. The broader markets were marginally down. Bank Nifty ended flat. On the global front, European markets remained strong for the second consecutive day as markets applauded Greece’s latest economic reform proposals that included tax hikes and some spending cuts. The debt-laden country asked for 53.5 billion euros (USD 59.4 billion) as part of a new bailout package from its creditors. The Greek parliament will vote on the measures on Friday and on Saturday, euro zone finance ministers will have their say. France’s CAC, Germany’s DAX and Britain’s FTSE rallied 1-2.8 percent. In Asia, China’s Shanghai Composite index continued its relief rally, gaining another 4.5 percent (in addition to 5.8 percent upside in previous session) on government’s rescue plan for stock markets. Hang Seng rallied 2 percent while Nikkei fell 0.4 percent. Back home, Vedanta was the biggest gainer on Sensex, up 5 percent. Jindal Steel & Power was up nearly 4 percent after Delhi High Court said mined coal from Gare Palma IV/2 & IV/3 will be sold through e-auction. ICICI Bank gained 1.3 percent after a media report indicated that the country’s largest private sector lender may sell its home finance subsidiary for Rs 4,400 crore. State Bank of India, Axis Bank and HDFC Bank rallied 1-2 percent. State-run power equipment maker BHEL rose 1.7 percent after brokerage CLSA has upgraded the stock to buy with a revised target of Rs 320 from Rs 205 per share led by 10-17 hike in earnings per share (EPS), higher FY16 order inflows, better margins on lower materials and economies of scale on large order wins. Its rival Larsen and Toubro gained 1.3 percent. Commercial vehicle maker Tata Motors advanced 1 percent on getting a contract to supply high mobility vehicles to Indian Army. TCS lost 2 percent after its Q1 revenue (up 3.5 percent Q-o-Q) missed street expectations (4.2 percent). Profit fell by 3.3 percent and margin lost by 91 basis points sequentially but both were ahead of estimates. ITC was down 0.3 percent after Gujarat banned its Sunfeast Yipppee noodles due to presence of lead and MSG in some samples. Among others, Sun Pharma (up 3.3 percent) and Reliance Industries (up 1.4 percent) were gainers in trade today while Bharti Airtel, HUL, ONGC, M&M, Bajaj Auto, GAIL, Hero Motocorp and NTPC lost 1-3 percent. In the broader space, Monnet Ispat was locked at 20 percent upper circuit after the company entered into discussion with JSW Energy for selling controlling stake in power subsidiary.

Source: http://www.moneycontrol.com/news/local-markets/sensex-nifty-snap-3-day-fall-bankscapital-goods-lead_1901041.html